Outcome Based Pricing

“It gets so much fuzzier on these like tasks that we actually ask Claude these days. Like I had a strategy document. I use Claude to critique my strategy document like. What was the outcome? It's like, well, I don't know. It's like, tell me how the strategy goe…”

“It gets so much fuzzier on these like tasks that we actually ask Claude these days. Like I had a strategy document. I use Claude to critique my strategy document. Like, What was the outcome? It's like, well, I don't know. It's like, tell me how the strat…”

“Most people love outcomes until they have an outcome, because once you have an outcome, it's like giving away royalty, right? I mean, I've talked to customers who love, you know, outcome based pricing, and I say, I'm all in until they, oh my God, like, what ar…”

“Most people love outcomes until they have an outcome. Because once you have an outcome, it's like giving away royalty, right? I mean, I've talked to customers who love, you know, outcome-based pricing, and I say, I'm all in until they, oh my God, like, what ar…”

“We started to like give some bigger customers the option to do that. And I think most of them still choose like the usage based, but some do choose the outcome based.”

“I think the only bigger, big problem with the outcome based is the definition of the outcome. Like you can call anything a resolution.”

“Now, the big challenge is seed based pricing, which you alluded to, is it breaks when the product's core value is not about access, but it's about something doing the work on your behalf. So at that point, charging per user doesn't make sense because user isn'…”

“The problem with say customer service where I've saved you know, you used to spend 20 dollars on customer service with our tool, you'll only spend 10. That's a great sales pitch in year one. In year two, the customer goes, but I only spend 10. Now I want to sp…”

“The only area where that's really possible today to pull off is, is probably customer support, customer success, because you can kind of objectively measure the resolution of something.”

“On outcome-based pricing it sounds very appealing, like, if it can work, but one thing that we've started realizing is it actually ends up correlating quite a bit with usage-based pricing, especially with test time compute. Like, if the thing is just, like, th…”

“I think, today, a lot of the economic model is time and materials. It is going to go towards outcome-based pricing.”

“I tend to think that the usage based pricing and outcome based pricing is the most fastest way to a billion.”

“I think it's where actually like the market equilibrium, like where clearing will actually happen, you know, two, three, five years from now is experimenting with new pricing models, like outcome based pricing and actually increasingly using outcome based pric…”

“The expectations of clients are going to change. And I think outcome-based pricing is a way to catch on to the new wave where people really want to pay for results, and they don't want to pay for the right to use the software. But I can't predict the future, b…”

“When you look at like outcome based pricing, it is impossible unless it is completely non-human in the loop, because otherwise there's always going to be this continuous debate.”

“In our customer base, we do what's called outcome based pricing. So essentially every time the AI agent solves the problem or saves a customer or whatever it might be, there's a pre-negotiated rate for that.”

“At Sierra, we're really focused on what we call outcome-based pricing, you know, charging for the job done.”

“That's another really powerful part of software as a service in the era of AI, is I think you can, you know, I think the best AI companies are aligning their business model with their customers' business models charging for the outcome, you know, and I think t…”